In the past few months, the market for crypto collectibles has exploded with some names like Cryptopunk going viral on the internet.
This boom in non-fungible tokens (NFTs) has made it possible for enthusiasts to rediscover some of the earliest non-fungible tokens, thereby propelling their value in the recent market. Just like words like “crypto” and “Bitcoin,” NFTs have become a household name with hundreds of thousands of people now investing in this emerging industry.
But this article is focused on one of the most popular NFTs known as a CryptoPunk. These are a few of the digital avatars trading for hundreds of thousands of dollars at a time. So, what is a CryptoPunk, and why are they so popular?
What Is A CryptoPunk?
A CryptoPunk is a 24×24 pixel, 8-bit-style unique avatar that was created by development studio Larva Labs. CryptoPunk began as an experiment conducted by software developers Matt Hall and John Watkinson in 2017 and has since produced a total of 10,000 images tokenized as NFTs on the Ethereum blockchain.
An NFT is effectively definited as a unique asset that can’t be replaced with something else. This makes it impossible to trade an NFT against the knowledge of the original owner.
Why Are CryptoPunks So Popular?
If you have been very observant in the bloockchain market then, you must have heard of NFT art pieces that sold for millions at auction. A good example is the CryptoPunks Ethereum NFT that recently broke its previous record after selling for 8,000 ETH ($23.7 million). This was times two of the previous CryptoPunks record of $11.8 million, which was achieved in June of 2021.
This wasn’t always the case from the beginning in 2017 when a CryptoPunk NFT cost between $1 and $34. So, what happened? Why is the price so high now?
The answer is simply investment. Since we described NFT as a form of art that has a unique owner, this uniqueness makes CryptoPunks a wise move for investors who trust the NFT market.
Investors believe that an NFT’s value will eventually grow with increased public perception and popularity, since the project is still in its early stages. But this investment can easily go from being highly lucrative to a way to lose a lot of money.
We don’t see CryptoPunks declining in the coming days or weeks due to the boom in popularity that they have received. The rarer the CryptoPunk, the more prestigious the ownership.
So if you have some extra couple hundred thousand lying around, you could grab yourself a CryptoPunk either for show off or investment.
How to Buy CryptoPunks
If you have been asking where to buy CryptoPunks then today is your lucky day. At the moment, you can only buy CryptoPunks via the LarvaLabs website. This site is owned by the original developers of CryptoPunks, Hall and Watkinson.
From this site, you can see other projects created by the developers of CryptoPunk and you can also trade on the marketplace. You will find hundreds of different CryptoPunks for sale with the cheapest of these avatars costing 68.54 ETH ($178,174.53 USD).
If you are considering buying a CryptoPunk for yourself, then you need to be pretty wealthy to bag one, with even the most basic avatars going for over $100,000. But there is still hope for those who want to exploit the the decreased popularity of NFTs. Maybe prices might drop in the future, but who knows?
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